One stock that I think has traded irrationally is Deckers Outdoor Corp. (NASDAQ: DECK).
Shares of the UGG and Teva footwear company had fallen to $80 per share in late October, but lost nearly 50% of its value from there in November.
Considering that the company increased guidance on Oct. 23, this move made little sense.
When I last wrote about DECK in July, shares were trading for more than $100, but well off their highs above $160. At that time, I suggested that investors resist the urge to buy the beaten-down stock, no matter how tempting.
It wasn't that I didn't believe in the potential of the company. Instead, the macro picture being as it was at that time suggested waiting for a better entry point. I thought below $80 would make sense.
I was right about waiting, although I did not think the stock would sink to less than $50 as it did in late November. Obviously something was amiss given that DECK's performance was quite stellar.
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